By on May 12, 2009

You’d better be, because the White House told Wall Street Journal that it will hold onto its GM stake for “at least two years.” Out of “necessity,” no less. And burning $10bn in cash per quarter all the way. According to the WSJ report, the White House still doesn’t want to involve itself in day-to-day operations. Is that offer only good outside of bankruptcy? If Chrysler is the canary in the coal mine, the answer seems to be yes.

Meanwhile, as the government moves to protect its investments on our behalf, the lawyers have weaseled their way to the front of the Chrysler payout line. Automotive News [sub] reports that Chrysler lawyers have “taken the unusual step of asking a judge to give their fees special priority.” Unusual how? Who doesn’t want “superpriority”? Besides taxpayers, of course. Anyway, the steps seem to indicate that a lot of people will be walking away from the Chrysler bankruptcy empty-handed; Chrysler’s Day Jones and Capstone counsel not being among them. “It’s uncommon for lawyers not to get paid. I suspect they’re not optimistic about a carve out,” says Professor David Skeel of UPenn.

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6 Comments on “Are You Ready To Own GM For “At Least Two Years”?...”


  • avatar
    tuck

    Through the next Congressional election, at least. Nice to have all those UAW guys on the payroll… After that, there’s a Presidential election coming up, who knows?

  • avatar
    Bunter1

    tuck-might backfire though, most are against the whole mess.

    I think a lot of the “policy” we have heard so far from Uncle Barry is glassy eyed idealism. I think he really believes that if we could just clear up some “misunderstandings” the whole world would right itself and he’s the guy to clear up.

    I think it would amaze him to find out that some groups (say in the mideast?) really do want to the elimination of other groups and say so frequently in their local press.

    Just a thought.

    Bunter

  • avatar
    Richard Chen

    Then there’s Conrail, a government property for 11 years after the bankruptcy of a few smaller railroads. Anyone know the details of that venture?

  • avatar
    jpcavanaugh

    Employee Discounts for Everyone!

  • avatar
    gslippy

    Holy cow; this seems like grounds to impeach somebody.

    Theoretically, the Titanic could have been patched, too – if only enough plates, rivets, floats, and divers could have been deployed fast enough.

    A “saved” GM will hardly be a trophy worth displaying.

  • avatar
    KGrGunMan

    @ jpcavanaugh

    same as a year ago.

    @ gslippy

    look at the bright side, if we spend a couple hundred billion right now then in 30 years if we’re lucky and if the world recovers and God comes to earth and blesses GM then there is a very slim chance that we may be able to sell GM for like 2 billion.


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